Is it time to take out a second mortgage? There are several ways to tell. The main reason for taking out a second mortgage is to take equity from your home and turn it into cash. A second mortgage is a loan taken against the equity that has been built up in your home. Most lending institutions require the total amount of debt from the first and second mortgage combined could not be more than 80% of the total market value of the home. But in today’s economy because of record low interest rates and a competitive lending marketplace, we work with lenders that will loan up to 125% LTV (loan to value of your home)
Second mortgage repayment terms can vary considerably, so it is important that you look around and choose the options that are best for you. Common Second Mortgage options range in length from 2 – 20 years, with the majority of second mortgage loans being 5 – 10 years. Other factors you might want to consider are fixed rate vs. variable rates, and how much you want to borrow.
Most loan consumers have many questions concerning their second mortgage. At Bradford Mortgage we try to inform you much as possible about every loan program. If you don’t see the answer to your question, or if need more information please request a quote and a mortgage specialist will get back to you as soon as possible.
Common Second Mortgage Questions
How much will my monthly payments be and will they pay off the loan and when?
Since each loan program is unique, we can’t tell exactly what your payments or terms will be, but if you have a 10 year second mortgage, it will be 10 years before your loan is paid off. As for monthly payments, this will vary depending up your unique situation.
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